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09-21-2010, 06:58 AM
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Location: Raleigh
217 posts, read 432,513 times
Reputation: 94
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The North Hills area is enjoying double digit appreciation in home prices. There are a whole slew of neighborhoods that are enjoying appreciation >= 3%. What’s that old saying, Location, Location, Location…
This is information that I put together from the TARR Report www.tarreport.com. He collects data from the MLS and Tax Records and calculates the results by taking the subdivisions with the most qualifying resales. It is based on the number of qualifying sales in their database during the past 13 months and the average sales price of those sales.
PPY = percent per year appreciation
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09-21-2010, 07:15 AM
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5,665 posts, read 17,022,214 times
Reputation: 4607
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"He collects data from the MLS and Tax Records and calculates the results by taking the subdivisions with the most qualifying resales. It is based on the number of qualifying sales in their database during the past 13 months and the average sales price of those sales."
What exactly is a "qualifying resale"? Does that mean he throws out foreclosures, for sale by owner, or anything else to make his numbers look good? 
It says "Avg PPY", but the method of calculation is still not clear to me, even with you explanation. Perhaps because the "years of home ownership" column was thrown in. Does that mean that the homes have appreciated an average of x% over the duration of last ownership? Or does it mean that this year, the average home in a certain neighborhood as appreciated x% in value? The first method of computing it is nice, for certain, but the second method would be impressive in this economy. |
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09-21-2010, 07:32 AM
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Location: Oxxford Hunt, Cary NC
4,467 posts, read 11,262,390 times
Reputation: 4229
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Nice to see my neighborhood on the list.  |
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09-21-2010, 07:36 AM
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Location: Raleigh
217 posts, read 432,513 times
Reputation: 94
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Quote:
Originally Posted by NewUser
"He collects data from the MLS and Tax Records and calculates the results by taking the subdivisions with the most qualifying resales. It is based on the number of qualifying sales in their database during the past 13 months and the average sales price of those sales."
What exactly is a "qualifying resale"? Does that mean he throws out foreclosures, for sale by owner, or anything else to make his numbers look good?
It says "Avg PPY", but the method of calculation is still not clear to me, even with you explanation. Perhaps because the "years of home ownership" column was thrown in. Does that mean that the homes have appreciated an average of x% over the duration of last ownership? Or does it mean that this year, the average home in a certain neighborhood as appreciated x% in value? The first method of computing it is nice, for certain, but the second method would be impressive in this economy. |
He looks at individual home sales over the last 13 months, compares it to the exact same home the last time it sold, then calculates the average appreciation (or depreciation) over the time period between those sales.
For example; if House A sold in June of this year for $300,000 and the last time House A sold was June 2 years ago and it sold for $270,000 then, the average PPY would be 5.5%
($30,000 price change/$270000 previous sale price/2 years)
“Qualifying resale” means it has to be the exact same house for both sales. That’s the only way you can truly determine whether home prices are increasing or decreasing. He does not throw out any sale based on sale condition.
Does that make sense or am I confusing it more?
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09-21-2010, 07:40 AM
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Location: Oxxford Hunt, Cary NC
4,467 posts, read 11,262,390 times
Reputation: 4229
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Quote:
Originally Posted by adlnc07
Nice to see my neighborhood on the list. |
Oh, and my old neighborhood in Apex. That's kind of funny. I guess I pick good locations. |
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09-21-2010, 07:44 AM
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Location: Cary, NC
41,654 posts, read 72,810,033 times
Reputation: 43476
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Kinda puts the lie to the old "HOAs preserve property values," doesn't it? There are quite a few non-HOA neighborhoods in that list, and several at/near the top.
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09-21-2010, 07:45 AM
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Location: Cary, NC
8,269 posts, read 24,415,651 times
Reputation: 5586
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Wow, I sold my tiny ranch house in Oak Park 7 years ago for significantly more than the average price this site has listed!
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09-21-2010, 07:46 AM
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Location: Knightdale
375 posts, read 1,112,276 times
Reputation: 168
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This is some great info! My neighborhood isn't on the list, but I'm not surprised either. Its a good location, but people rarely move out. =0)
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09-21-2010, 07:54 AM
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Location: Morrisville, NC
9,003 posts, read 13,966,202 times
Reputation: 8727
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Quote:
Originally Posted by MikeJaquish
Kinda puts the lie to the old "HOAs preserve property values," doesn't it? There are quite a few non-HOA neighborhoods in that list, and several at/near the top.
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Well, all you can truly infer is that it is possible to have good property values without an HOA.
As the OP pointed out it really just proves that Location is the main driver. Also, these are older homes in a prime area which are probably being improved which means their prices will go up. |
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09-21-2010, 07:58 AM
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Location: Raleigh
217 posts, read 432,513 times
Reputation: 94
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Quote:
Originally Posted by lamishra
Wow, I sold my tiny ranch house in Oak Park 7 years ago for significantly more than the average price this site has listed!
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You have to remember that the Oak Park being referred to here has a HUGE range of homes in it - from homes built in the 60's to homes built in the last few years. And this is the Oak Park in North Raleigh BTW. But good for you! |
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